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GibsonL6s

As mentioned in other threads, the Prius can be a target for catalytic converter theft. I believe Gen 2 and Gen 3 are targeted due to the metals in them. Also some Prius have head gasket issues. Prius chat and the reddit sub have lots more info on these issues. It may be better to go with a Honda Civic or Toyota Corolla for ease of maintenance. Good luck!

GibsonL6s

Not to be alarmist but I would get her away from the advisor ASAP. These situations are ripe for fraud or bad investment decisions, the last thing she can afford it to loose her assets. I would want her to have her money at Schwab, VG, Fidelity etc. She does not need an advisor with you in the picture. &1 @Annette and @Gibson, Not to get sidetracked from the OP's question, but not sure why you say this. The original post said that this particular advisor put her in Dimensional Funds (which, while slightly more expensive than Vanguard/Fidelity funds, are not outrageously expensive; if funds like that are offered in 401(k) most people would say they are reasonable), plus $170 annually (mentioned in a subsequent post). I am as much hardco...

GibsonL6s

I have a Prius and a Tesla 3. I bought the Prius to fit a specific purpose, long road trips and the ability to fit lots of stuff in it due to my kid going to college 5 hours away. The car is economical and practical and pretty boring. Now that I have the Tesla, there is not comparison as far as fun to drive if that is a thing for you.

The question is what are your needs and budget. I personally like having a gas car with a long range, as even though the Tesla charging network is great, charging still take a lot of time and adds significantly to the length of long trips. If I was picking a car for commuting, the idea of never having to stop for gas and charging at home is a huge plus to me.

GibsonL6s

Not to be alarmist but I would get her away from the advisor ASAP. These situations are ripe for fraud or bad investment decisions, the last thing she can afford it to loose her assets. I would want her to have her money at Schwab, VG, Fidelity etc. She does not need an advisor with you in the picture.

GibsonL6s

We just got a M3 standard range for my wife and she loves it. We are however installing a level 2 charger. It is expensive to do since my breaker box is on the other side of the house, but I would not want an EV without a L2 charger at home. I am not an expert, but I thought I read using only super chargers is not the best for battery life.

We also have a Prius, which we just took from LA to Park City. Honestly just from the point of range and convenience of gas stations and downtime, I would not want to do a long road trip in a Tesla. The Prius has a 530 mile range and you refuel in 5 minutes.

Good luck!

GibsonL6s

As others have mentioned Buffet can invest in securities he engineers to provide upside while protecting the downside. Additionally, he can buy entire businesses at attractive prices due to his liquid position. On the stock side, I remember seeing an interview where he mentioned the sheer volume of reading he does of annual reports to know exactly what he wants to buy when it goes on sale.

I personally do not have the time to dedicate to that amount of research, but good luck!!

GibsonL6s

What about the low-rate mortgages that a credit union or bank has given out? What happens to those, if a credit union or a bank needs to cash in their treasuries to pay out depositors? Are the mortgages safe? Are they sold to someone else? Sorry for my lack of knowledge and the questions, but banking is not my niche. The good news is that you don't have to worry about this. As long as you are under the insurance limits you will be fine. The balance sheet of the bank or credit union changes constantly and would be near impossible to analyze. If a bank is not sold, the FDIC sells the assets to pay the depositors who have over the FDIC limits and these people may have to wait longer than the insured depositors. If a bank has a liquidity crunc...

GibsonL6s

Insured depositors typically get paid in a day or two.

GibsonL6s

Interesting that people coming into the thread complaining about who is paying for the bailout, when there is no bailout. Won't we have to see what the total cost is? The assets clearly will not cover the deposits. I guess they are saying the FDIC will absorb the loss using its balance sheet and will not raise assessments to banks so they won't be passed on to the consumer. Also, I wonder if the FDIC rules will be changed. If a payroll account has $5m in it and it is for the checks of 1,000 people, is it fair to cap that at $250k. If a VC firm has an investment in a company and the ultimate beneficiaries of the investment are a public pension fund with thousands of retirees should the $250k cap apply? I get the Mark Cuban has $10m in SVB a...

GibsonL6s

My plan now is to close out almost all the MYGAs as they mature and I intend to just keep the MYGAs from one carrier (Gainbridge).
[/quote]

How did your state guaranty association's coverage figure into this. I would think spreading the risk around is important for annuity owners.

GibsonL6s

Making 20,000 recommendations is no different than making none to me. It means you have no conviction in what you are doing and are just spouting things off for entertainment value. I am more interested in what concentrated investors have to say.

GibsonL6s

GibsonL6s wrote: ↑Mon Mar 06, 2023 12:50 pm Yes, the statement seems to include similar earning through retirement.

If you go online to the Social Security website, you can input what you think your earnings are for future years to get an estimate. I am 59 and my estimate drops 5% if I stop working between now and full retirement age.

GibsonL6s

Yes, the statement seems to include similar earning through retirement.

If you go online to the website, you can input what you think your earnings are for future years to get an estimate. I am 59 and my estimate drops 5% if I stop working between now and full retirement age.

GibsonL6s

My wife needed a new car. I thought the new Prius Prime would be a nice choice until we realized the wait could be a year and the markups over MSRP were currently about 10k.

So for us we went with a Tesla model three. The process was the easiest car buying process I have ever experienced. Signed up for the test drive online. When we were done, we ordered the car in about five minutes. I told them I would use my own bank which was also pretty seamless. The car came in about a month and is a blast to drive. That said, I have a Prius, so we we have a car with a range of over 500 miles for roadtrips.

Good luck!

GibsonL6s

I think the stock market is a better investment than real estate. I'm genuinely perplexed by (or perhaps ignorant of) how it's possible that real estate, with all of its associated costs (property taxes, everyday maintenance, etc.), could be a better investment than stocks. Unless someone has massive capital, it's practically impossible to be nearly as well diversified with real estate. Almost anyone can use one auto rebalancing fund to invest globally in stock, bonds, and real estate with little or no maintenance or oversight. Even if I had massive capital I wouldn't bother with direct real estate at all. I feel the same way, but one hears so much about the upside of real estate that it almost sounds tempting. Today's real estate headline...

GibsonL6s

Wouldn't it be easier to maintain a fixed asset allocation and withdraw from equities to the extent they exceed the target allocation and withdraw from the fixed income portion to the extent they exceed the target allocation. I don't disagree with having a portion of the "fixed income" be short term to smooth the ride a bit. In a market where both asset classes are down, I would think one's best defense is to reduce withdrawals to the extent they can.

GibsonL6s

If the goal is to give her a lump sum she can annuitize, it seems you can,

1. Buy a MYGA and make her the beneficiary and she can annuitize it at the company you buy it at or roll it to another life co.
2. Buy a SPIA on both of you now so the income continues for either of you.
3. Keep a lump sum in Treasuries and she can use it to buy an annuity if she needs it.
4. Buy a single premium life policy and she can use the benefit to annuitize at the life company you buy it from or any other company as the benefit is tax free.

Good luck.

GibsonL6s

I see that 2022 was a terrible year for the 3 fund portfolio. Every component went down; some more than others, but they all went down! There was no safe haven, no ballast or what ever people may have been led to believe. So, I've been trying to understand what happened and have been reading some material from JPMorgan. They have a wide selection of model portfolio's available depending on ones risk tolerance. They have also researched the correlation between stocks and bonds and have found that the negative correlation is strongest when the yield of the 10 year treasury is higher. Also, the threshold for the switch has shifted over time. Between 1965-January 2009, the threshold was 4.5%. Since February 2009, it's only 3.6%. Here is an ill...

GibsonL6s

yosemite_mountain wrote: ↑Wed Jan 11, 2023 8:02 am
GibsonL6s wrote: ↑Sun Jan 08, 2023 4:00 pm As someone in institutional real estate I am very curious as to where you are building 16 to 25 units for $300k.

Good luck!
This would be outside the US. I'm familiar with construction in said country; everyone buys land and constructs their own house; very few people purchase already built houses.

Got it, good luck with the project!

GibsonL6s

As someone in institutional real estate I am very curious as to where you are building 16 to 25 units for $300k.

It may be a good idea to start with owning existing real estate, development is a very specialized field requiring even more expertise.

Good luck!

GibsonL6s

This two will get you SPIA and MYGA quotes without entering any emails or contact info. https://www.immediateannuities.com/ https://www.blueprintincome.com/ GibsonL6s- Thank you. It seems that at these sites, one cannot obtain a quote that includes annual fixed (e.g. 3% per annum) adjustment without providing email. Is this your experience? Are there other websites where one can obtain a quote that includes fixed (e.g. 3% per annum) adjustment without providing email? Thanks! :sharebeer I just tried and yes your are correct. I actually have an account at blueprint income as I find it useful, I am sure you can ask them not to call if that is your concern. Sorry I am not aware of other sites, these are the two I tend to use. Good luck.

GibsonL6s

This two will get you SPIA and MYGA quotes without entering any emails or contact info.

https://www.immediateannuities.com/

https://www.blueprintincome.com/

GibsonL6s

Fees R Us Wealth Management

Long

BA
JPM
JNJ

Short

BBBY
META

GibsonL6s

Everyone has a plan until they get punched in the mouth. Mike Tyson

GibsonL6s

Sorry for your loss. It may be difficult to get a PM to ramp up knowing you are going to sell the assets shortly. I like the suggestion of finding a firm that does both management and brokerage and incentivizing them with possible listings. Due to the large number, you may need to split the portfolio up.

A couple of questions,

Are they all closely located to each other.

What state are you in, some of us may have suggestions for you, depending on where you are.

Feel free to PM, thanks

GibsonL6s

Sorry for your loss. It may be difficult to get a PM to ramp up knowing you are going to sell the assets shortly. I like the suggestion of finding a firm that does both management and brokerage and incentivizing them with possible listings. Due to the large number, you may need to split the portfolio up.

A couple of questions,

Are they all closely located to each other.

What state are you in, some of us may have suggestions for you, depending on where you are.

Feel free to PM, thanks

GibsonL6s

4146.12

GibsonL6s

I actually put this into portfolio visualizer. To get a solid backtest I had to replace some of the ETFs with longer term versions by other providers. After I did this, the backtest went back to Jan 2011, where it lost 11.3% to 8.6% to a 90/10 portfolio of 90 % SP500 and 10% 1-3 years treasuries.

My guess would be all of the value is muting the run up tech stocks have given the SP500. Going forward who knows.

GibsonL6s

I have been moving away from a total bond fund and toward Treasuries, realizing that a constant 7 year duration is not what I want moving toward retirement. I am also using them to build a potential bridge to social security if something like an unexpected layoff should occur.

Additionally, I am trying to simplify things and reduce smaller meaningless positions ie < 5% of the portfolio.

GibsonL6s

In my experience over several thousand apartment units is that when the insurance companies inspect and find them they will want them replaced. Is the condo HOA the responsible party for this breaker since it is a condo? I would not buy a condo if the HOA is aware of the presence of these boxes and is willing to leave them in place. Do a google search and you will see lots of articles on the dangers of these. Given the relatively low cost of replacement, I just do not see why anyone would not just replace. The inspector even pointed out that on the distribution thingy outside the units that has 4 meters & 4 main panels, all 4 were FPE Stab-Loks. I looked at the other panels for many other units & the same, Stab-Loks. The property m...

GibsonL6s

Here is a nice summary of the research

https://www.spglobal.com/spdji/en/docum ... senger.pdf

GibsonL6s

In my experience over several thousand apartment units is that when the insurance companies inspect and find them they will want them replaced. Is the condo HOA the responsible party for this breaker since it is a condo? I would not buy a condo if the HOA is aware of the presence of these boxes and is willing to leave them in place.

Do a google search and you will see lots of articles on the dangers of these. Given the relatively low cost of replacement, I just do not see why anyone would not just replace.

GibsonL6s

I would suggest visiting immediateannuities.com and blueprintincome.com and comparing the payouts.

Some of these insurers may offer features such as unused premium rebates and period certain which may be different and useful to you. The payment at 65 looks low.

Good luck.

GibsonL6s

I recently did a trip to Park City from Caifornia and for peace of mind put Nokian WRg4 all weather tires on the car. I honestly probably did not need them, but it has rained a few times here in California and they so far have been superior to the Toyo Nanos that came with the car and in the bit of wintry mix I did drive through they seemed great, however I did not drive them in real snow. In your situation, I would consider an all weather tire as a compromise.

I see a poster above said they wear fast, so I may have to see if it is worthwhile to put the original tires back on after rainy season.

GibsonL6s

Hopefully this meets the bar for personal finance. I was going to put $300K down on this property, which is a substantial portion of my net worth. So investing it in real estate as opposed to something else. I went mutual (signed) a purchase agreement on Saturday afternoon and have not submitted the earnest money payment yet. For no specific reason other than I don't like the way I feel about what I am getting into I don't want to proceed with this. I ended up paying a bit more than I was originally thinking and also several things about the property are not really what I want. Obviously it would have been better if I had a handle on that before I signed on the dotted line. We had been $5K apart on the price, after I had come up considerab...

GibsonL6s

For what it is worth, when I bought my car which was a Prius LE, my decision was made for the great mileage and a completely different reason. Most hybrids and EVs do not come with a spare tire and AAA does not fix tires, they only mount a spare you have with you. The LE is the only Prius hybrid that has at least a donut spare. I have gone on many long drives and the combination of the donut spare with the over 500 mile range with a 9 gallon tank has been fantastic. I would consider a pure EV for around town and commuting as long as the range was 200 miles or over as I would not want to charge at work where you have to move your car after it is charged. I agree the PHEV does not seem like the best choice unless you are a one car family tha...

GibsonL6s

For what it is worth, when I bought my car which was a Prius LE, my decision was made for the great mileage and a completely different reason. Most hybrids and EVs do not come with a spare tire and AAA does not fix tires, they only mount a spare you have with you. The LE is the only Prius hybrid that has at least a donut spare. I have gone on many long drives and the combination of the donut spare with the over 500 mile range with a 9 gallon tank has been fantastic. I would consider a pure EV for around town and commuting as long as the range was 200 miles or over as I would not want to charge at work where you have to move your car after it is charged. I agree the PHEV does not seem like the best choice unless you are a one car family that...

GibsonL6s

(Ability - Willingness - Need) should dictate investing strategy. The 3 fund portfolio is a great strategy and I have implemented it for retirement funds. We are fully on track for a great retirement. My question is for those who have the ability and willingness to take more risk. What have you invested in that had a higher risk/reward profile? It would seem that if you have a good chunk of money early on in life you should allocate a small percentage to big upside investments, while working your retirement plan. What have been some of your best high risk/reward investments? I have occasionally dabbled in leveraged closed end funds that trade at wide discounts during times of disruption. Sometimes when the disruption passes the discounts n...

GibsonL6s

The advice also at its core is to keep things simple no matter the AA. I have an account where I have one equity index fund and individual treasuries only. This makes life simple and I always know my equity allocation because Schwab tells me the % of the account the one ETF is.

GibsonL6s

A friend told me about a friend of his who had a several million dollar gain on the sale of a piece of property in a HCOL area who engaged in options trading and lost all of it. There are opposites to every story.

GibsonL6s

A few things to think about. Who is doing the management and more importantly the tenant screening Are you planning use leverage, if so do you have the reserves for the inevitable tenant default eviction process Who is doing the due diligence on the properties to ensure the plumbing, HVAC roofs etc are in good shape Right now in real estate many deals are negative leverage, meaning the cost of the debt is higher than the going in return. This can mean a few years of negative cashflow. Good luck I'll be managing myself, as I have done in the past. If my monthly revenue exceeds monthly expenses, then why would that not be positive cashflow? Not including loan paydown and appreciation. Positive cash flow is different than positive leverage. Y...

GibsonL6s

A few things to think about.

Who is doing the management and more importantly the tenant screening
Are you planning use leverage, if so do you have the reserves for the inevitable tenant default eviction process
Who is doing the due diligence on the properties to ensure the plumbing, HVAC roofs etc are in good shape

Right now in real estate many deals are negative leverage, meaning the cost of the debt is higher than the going in return. This can mean a few years of negative cashflow.

Good luck

GibsonL6s

I have decided I like bonds, but not bond funds. For me, I want to pick the duration and not have a constant duration.

GibsonL6s

You can see a variety of timing indicators here and pick one depending on your time horizon and strategy. They even have a tutorial which shows you how to use it.

https://www.barchart.com/etfs-funds/quotes/SPY/opinion

https://www.barchart.com/education/webi ... rt-opinion

Not what I would do, but you asked.

GibsonL6s

While selling shares has a lower tax implication, in a down market the net may be lower than receiving a dividend and paying ordinary income taxes on it as there a companies that resist cutting dividends in tough times.

I looked at Altria. Since 1962 it has paid out $142 per share in dividends. The stock is $46 today. We will never know if they retained all of that cash if the stock would be worth more than $188 per share and what they may have done with it.

Way back in college one of my finance professors taught that when a company declares dividends for the first time the stock falls, as the market no longer believes management has "growth" plans and has no better use for the cash.

GibsonL6s

jebmke wrote: ↑Mon Oct 31, 2022 10:08 am
TheoLeo wrote: ↑Mon Oct 31, 2022 10:03 am When I make fixed income of any kind a sizeable position in my portfolio I immediately become uneasy.
Sounds like you need to go 100% equity.

Or just move away from bond funds to cash and/or individual bonds you hold to a maturity you select. For many investors 2022 taught them that stocks and bonds can move down together which frightened some investors.

GibsonL6s

The reality is the allocation makes zero difference as she will never spend it all. I think the main takeaway for retail investors is the S&P 500 is a great choice for whatever their stock allocation is and most will never outperform it. Buffet does not like bonds and prefers short term treasuries for the non stock portion.

GibsonL6s

If stay the course is dead, what would be born out of its ashes? Thinking for oneself. For example, on 12/3/2021, the 10-year Treasury was yielding 1.34%. Phrased another way, it was selling at 75x earnings (and the earnings wouldn't go up for at least 10 years). In what universe is a 75x multiple justified?? Heck, even the epic Japanese bubble only peaked at 65x earnings. Why people stayed the course and allocated 40% (or whatever amount) of all their money to bonds is an absolute mystery to me. But I guess "nobody knows nuthin'," so off to the slaughterhouse it was. :beer I see your point, however, I don't equate stay the course with a particular investment like a 10 year treasury, I equate it with sticking with a strategy thro...

GibsonL6s

This downturn has shown clearly that bonds are not safe as they are supposed to be in a stock market crash. The 60-40 thinking on this forum is proving to be bad and it may get worse. People who have been investing in real estate since 2008 are sitting pretty and proving to be correct in not believing in paper assets. I have been following the bogle head policy of only having a primary home and not any investment properties, but Looks like that was a big mistake. Any thoughts going forward ? People who bought stocks in 2008 are also sitting pretty and have made money. I am in institutional RE and valuations are currently getting hit and banks are pulling back on lending. Every type of real estate is facing challenges with the capital marke...

GibsonL6s

If stay the course is dead, what would be born out of its ashes?

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